Correlation Between Blucora and Bank of New York

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Blucora and Bank of New York at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Blucora and Bank of New York into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blucora and Bank Of New, you can compare the effects of market volatilities on Blucora and Bank of New York and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Blucora with a short position of Bank of New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blucora and Bank of New York.

Diversification Opportunities for Blucora and Bank of New York

0.39
  Correlation Coefficient

Weak diversification

The 3 months correlation between Blucora and Bank of New York is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Blucora and Bank Of New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of New York and Blucora is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Blucora are associated (or correlated) with Bank of New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of New York has no effect on the direction of Blucora i.e., Blucora and Bank of New York go up and down completely randomly.

Pair Corralation between Blucora and Bank of New York

Given the investment horizon of 90 days Blucora is expected to generate 1.38 times more return on investment than Bank of New York. However, Blucora is 1.38 times more volatile than Bank Of New. It trades about 0.05 of its potential returns per unit of risk. Bank Of New is currently generating about 0.03 per unit of risk. If you would invest  1,169  in Blucora on April 8, 2022 and sell it today you would earn a total of  660.00  from holding Blucora or generate 56.46% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Blucora  vs.  Bank Of New

 Performance (%) 
      Timeline 
Blucora 
Blucora Performance
0 of 100
Over the last 90 days Blucora has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Blucora is not utilizing all of its potentials. The new stock price agitation, may contribute to short-term losses for the retail investors.

Structure and Payout Changes

Last Split Factor
1:10
Ex Dividend Date
2008-01-09
Last Split Date
2002-09-13

Blucora Price Channel

Bank of New York 
Bank of New York Performance
0 of 100
Over the last 90 days Bank Of New has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest sluggish performance, the Stock's forward-looking signals remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Bank of New York Price Channel

Blucora and Bank of New York Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Blucora and Bank of New York

The main advantage of trading using opposite Blucora and Bank of New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blucora position performs unexpectedly, Bank of New York can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Bank of New York will offset losses from the drop in Bank of New York's long position.
The idea behind Blucora and Bank Of New pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Check out your portfolio center. Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

Other Complementary Tools

My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go